Dangote Cement Hits N11.1Trn as Otedola Bets on Earnings, Dividend Profile
The stock market price of Dangote Cement Plc’s (Ticker: DANGCEM) share climbed further on Tuesday after the company toppled all other contenders to reclaim its largest in terms of market valuation on the Nigerian Exchange.
The latest push was supported by a large share purchase by Femi Otedola via open market deals. The billionaire investor has been ramping up shares in the cement company, raising its market valuation to an all-time high.
The king of the cement oligarchy family has become rather too popular with near maximum allowable daily gains which pushed its market capitalisation above N11 trillion. Data from the Nigerian Exchange showed that Ticker: DANGCEM was 9.99% higher than the previous day as more than 2 million shares of the company exchanged hands.
This is a significant increase from about 1.3 million shares of the category king cement name that was traded on Monday. The large share buying is coming ahead of the release of 2023 financial scorecard of the company. Dangote Cement’s 17.040 billion shares outstanding have now been valued upward to N11.107 billion at N651.8 per unit, according to data from the local bourse.
Otedola, explaining his reasoning for buying stakes in Dangote Cement said the potential of Dangote Cement to earn foreign exchange as well as its compliance with Environmental, Social, and Governance principles made it an ideal investment for him.
“Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy. This, along with the company’s pan-African presence, makes it an ideal investment choice. Selloffs Provoke Spike in Nigerian Treasury Bills Yield
Otedola supported his investing decision by saying that Dangote Cement’s track record of dividend payments and its commitment to sustainable business were major attractions. He said, “In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success.
“Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth. My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritize their shareholders.” #Dangote Cement Hits N11.1Trn as Otedola Bet on Earnings, Dividend Profile
